Target date funds are professionally managed, diversified investment funds, meaning investing in a BlackRock LifePath Fund can provide an all-in-one investment solution at any age.
Each fund holds a number of underlying investments – from stocks to bonds, including U.S. and global markets, as well as real assets such as real estate and infrastructure – creating diversified funds with one main objective: helping to manage a member’s investment risk throughout their working years and into retirement.
When a member is young and far from retirement, the investment mix is more aggressive to help their investments grow. As they approach retirement, the fund automatically shifts to a more conservative allocation with the goal of preserving the member’s savings. When they arrive at their desired retirement date, the fund shifts to an investment mix to help the member retain spending power through retirement.